RBS plans to delay home repossessions

Published: Dec. 1, 2008 at 1:03 PM

LONDON, Dec. 1 (UPI) -- The Royal Bank of Scotland plans to allow troubled homeowners a six-month grace period before repossessing their homes, sources said.

One source said RBS, which sold 57.9 percent of its shares to the government last week, had recognized that auctions on foreclosed properties contributed to housing market imbalances by driving prices down, The Times of London reported Monday.

In the third quarter in Britain, 11,300 homes were repossessed, a jump of 12 percent from the second quarter. Some are predicting as many as 100,000 British homes will be repossessed in 2009, well beyond the record of 75,000 set in 1991, The Times said.

The plan represents RBS's second concession to customers since the government took control, The Times said. The bank earlier said it would also not raise overdraft rates until 2010.

RBS is estimated to control 17 percent to 18 percent of the mortgage market in Britain, The Times said.

Last week, investors purchased only 0.24 percent of the shares the bank offered in an attempt to raise capital to meet new requirements. The lack of interest forced the government to step in, The Times said.

© 2008 United Press International, Inc. All Rights Reserved.
Order reprints



Additional News Stories
Police: Couple shoplifted for thrill (2 min)
Police review evidence against Bonds's son (3 min)
UPI NewsTrack Sports (5 min)
Group's top judicial hellhole: S. Florida (6 min)
U.S. markets mixed after Fed decision (19 min)
UPI NewsTrack Quirks in the News (19 min)
Bank robbery money returned via mail (20 min)
fark
If you go see Aunt Gladys and see she's unconscious and not breathing, call 9-1-1. If you go see...
Chilliest place in the Solar System ever measured by spacecraft found on the Moon, eclipsing the...
"I voted for medical marijuana, but I didn't expect it to be in my backyard," says dumbass who should...
Man wins lottery, does what most men only dream of doing. Sail away to some tropical island? No,...
"Please have a heart and donate...so I don't have to kill you and put your head on a pike"
Your Christmas tree should be a reflection of your family. Subby wonders what garland goes with...